Subject: Re: Confidential power plant project
From: "John DeLoche" <[email-masked]>
To: "Devon Archer" <[email-masked]>
Cc: "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Neil Callahan" <[email-masked]>
Date: Mon, 26 Nov 2012 22:50:50 -0800

thanks for the birthday wishes--definitely feeling old after a week as Roys
roomate!

Yes, now is the time to get these deals and the fund done!

Best,

John
On Mon, Nov 26, 2012 at 5:00 PM, Devon Archer <[email-masked]>wrote:

> John,
> This sounds like a very interesting opportunity.  Looking forward to
> hearing more.
>
> Happy Birthday as well!
>
> Let's get one of these done before you get really old!
>
> I am available tomorrow other than 12:30 - 1:30pm EST.
>
> Best,
> Devon
>
> On Nov 26, 2012, at 6:57 PM, John DeLoche <[email-masked]>
> wrote:
>
> > Gents,
> >
> > Just spent a week in Tokyo with Roys and the staff of this power plant
> company Platinum has formed in Japan, ICC Energy. I began introducing his
> team to my network financing, senior management and other contacts there.
> Bottom line is this power plant project appears very attractive, is being
> run by very competent managers and could be a significant revenue generator
> for us should we decide to be involved. Here is the background:
> >
> > Platinum bought a like new (one year of usage) 40Megawatt power plant
> from Toshiba. At 40mw, this will be the largest biofuel power plant in
> Japan. Palm oil will be the fuel. There is an energy shortage in Japan due
> to the Fukushima disaster and the subsequent shut down of all Japan's
> nuclear plants. Additionally, Japan consumes more power per capita than any
> country on earth. The Japanese government is providing incentives to power
> providers to develop alternative energy platforms (solar, wind, biofuel,
> etc). Basically, we are taking advantage of a feed-in tariff provided by
> the Japanese government which ensures a 20 year fixed price for power.
>  This is a very profitable project as a result. The equity in this single
> plant (large enough to power a small city) could be worth $50 million or
> more.  Once this plant is operational there is the opportunity to roll up
> several more and build a very large and profitable new power company.
> >
> > Roys and I discussed doing this as an RS vehicle to mitigate potential
> issues with obtaining Japanese debt financing (upon which the success of
> this project depends) given the highly conservative and closed nature of
> Japan. I recommend we do so for the following reasons.
> >
> > There is both a near term recap opportunity (in conjunction with the
> debt raise), fee opportunities as well as significant equity upside.  Step
> one would be helping obtain $30 million of bridge and project finance
> capital to start the construction of the plant and recap some of Platinum's
> equity contribution. This step would occur immediately after MEDI approval
> is obtained, which could be as soon as mid December. All parties agree this
> would be easier under a RS SPV. As equity holders, my understanding is that
> this would not require us to be licensed (although I am licensed through
> another BD).
> >
> > Roys is waiting for thoughts on how we structure the SPV, equity splits,
> fees etc. Platinum owns 100% of the equity and has committed about $20
> million to the project to the project thus far.
> >
> > Assuming we are all on board with moving forward on this, my suggestion
> is we start at 2 and 20 in a 5 year fund structure and see where it goes
> from there.
> >
> > Lets do a call to discuss on Tuesday if possible.
> >
> > Best,
> >
> > John
> >
> > Please excuse typos as this message was sent from my handheld device.
> >
>
>

-- 
John DeLoche
*Managing Director*
Rosemont Seneca Technology Partners
One Market, Spear Tower, 36th Floor
San Francisco, CA 94105
office: 415 293 8147
mobile: 415 793 7070

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